Lagos warns businesses that no refund policies cannot override consumer rights, urging firms to comply with state and federal consumer laws

The Lagos State Government has warned businesses against using “No Refund, No Return and No Cancellation” policies to deny customers remedies guaranteed under consumer protection laws.

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The warning was issued by the Lagos State Consumer Protection Agency in a statement shared by the state government on Facebook on Wednesday.

LASCOPA General Manager and Chief Executive Officer, Afolabi Solebo, gave the warning during a mediation session at the agency’s headquarters in Ikeja involving a customer and an event centre over a disputed cancellation charge.

The customer had booked the facility and paid a 50 per cent deposit but later requested to cancel the reservation.

However, the event centre reportedly insisted on retaining 50 per cent of the total booking cost, citing its cancellation policy.

Reacting to the dispute, Solebo said businesses must ensure that their internal policies and contractual terms comply with the Lagos State Consumer Protection Law 2025, as amended, and the Federal Competition and Consumer Protection Act 2018.

He stressed that statutory consumer protections take precedence where company policies conflict with the law.

According to the agency, it has continued to receive complaints from consumers who were denied refunds, replacements or other remedies because businesses relied on internal policies.

LASCOPA cautioned retailers and service providers against using blanket disclaimers and restrictive contractual clauses to avoid their legal responsibilities.

However, the agency clarified that consumer protection laws do not guarantee automatic full refunds in every transaction.

It said a customer’s entitlement to a refund, return or cancellation depends on the circumstances of the transaction and the relevant legal provisions.

It also noted that simply changing one’s mind after making a purchase does not automatically establish a right to a refund.

The agency urged businesses to review their refund policies, warranty conditions, cancellation charges and contractual terms to ensure they comply with applicable laws.

Consumers were advised to read terms and conditions before making payments, request receipts and keep transaction records.

They were also encouraged to report suspected unfair business practices to the agency.

Solebo disclosed that LASCOPA had received complaints over the past six months concerning business practices allegedly undermining consumer rights.

He said some cases were still under investigation, while others had been resolved through the agency’s intervention.

The latest warning comes as the agency continues to handle complaints across several sectors of the economy.

In March, LASCOPA announced that it had resolved more than 11,000 consumer rights violation cases and recovered over ₦860m for Lagos residents in the preceding five years.

Solebo said the complaints covered sectors including banking, electricity, transportation, hospitality, education and healthcare.

In April, ‘The PUNCH’ reported that the agency secured a ₦2.5m refund for a Lagos-based engineer, Peter Obidike, after goods he was transporting from Abuja were damaged by a transport company.

The company had initially refused to accept responsibility for the damaged item before LASCOPA intervened.

The agency’s latest position serves as a reminder that businesses cannot rely solely on their own terms and conditions to determine consumers’ legal rights.

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At the same time, customers must understand that the circumstances of each transaction matter when seeking a refund or other remedy.